Newsletter

Jovanni Avila

Basics of Credit

  • What is Credit? When a lender gives you money only if your promise too pay them back in the future
  • What are the forms of credit? The forms of credit can be credit cards, loans, or personal loans.
  • What costs are associated with credit? You can get interest from credit or a credit report fee from the credit bureau
  • What determines if someone gets credit or how much they get? Depending on your credit score is how much money you get. Also, to get credit you must show your creditworthiness to show the lender you will be able to pay them back.

Credit Cards

What is a credit card? Is a common card that gives you a credit limit on how much you can spend a month

When can you use credit cards? You can use the credit cards everywhere for store credit, as a co-signer, you have the over-the-limit which means that you only have a certain amount of money/ credit that counts towards anything you want. Personal or not personal.

What are the benefits and costs of using credit cards? The costs of using a credit card is getting a annual fee of $15-100. You also have to pay interest rate (APR) which you have to pay the balance by the due date which equals too no interest.You get a penalty fee if you don't pay on time.

Vocab. Watch

Credit Bureau- Has a record of every adult bounced checks which means you have no money in your account. Also it records any missed rent payments if you have ever been sued or if you've gone into bankruptcy. It assigns a Credit rating score which determines the number that reflects your creditworthiness, and your willingness and ability to pay your bills on time.

Credit Report- The history of your credit information and credit score. It's provided by the credit bureau's, and requested by lenders. It happens when you apply for your credit once a year for free.

Credit Cards- Some common credit cards are Visa, master card,Discover, Amex etc.

You must pay balance in full, and your balance can carry from month to month.

Letter

Dear Jen,

Ways to keep safe from any credit card issues, would first of all be to not go over your limit, and make sure every month that you can pay what you need too and still have enough money for everything else. You never want to reach over limit or have fees because then that kills your credit. Once your credit is killed you can never get it back, you have one shot and that's it. After you kill your credit it takes years upon years to get it back, and be back on track. My best advice is don't get a credit card till at least your 22 years old, once you are an adult so you can be responsible about your payments and not screw up. A credit card is a'lot of responsibility, make sure your able to handle one before you get one.